4-Star Bargain Stocks Ready to Bounce Back: Gentex

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, automotive and aircraft component maker Gentex (Nasdaq: GNTX  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Gentex and see what CAPS investors are saying about the stock right now.

Gentex facts

Headquarters (founded)

Zeeland, Mich. (1974)

Market Cap

$2.5 billion

Industry

Auto parts and equipment

Trailing-12-Month Revenue

$1.1 billion

Management

Founder/Chairman/CEO Fred Bauer

CFO Steven Dykman

Return on Equity (average, past 3 years)

16.7%

Cash/Debt

$421.7 million / $0

Dividend Yield

3%

Competitors

Magna International (NYSE: MGA  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 220 members who have rated Gentex believe the stock will outperform the S&P 500 going forward.

Just this morning, one of those Fools, All-Star BuffettJunior1, succinctly summed up the bull case for our community:

This is a truly wonderful business selling at a fair price. The company has a dominant 88% market share, which means that the company has a huge "economic moat," which should protect it for a long time. ... The company should grow at about 10% to 12% per annum over the next decade, which makes it a bargain at today's price of just over $17 per share. Also, a near-term catalyst that should drive the shares higher is the [Cameron Gulbransen Kids Transportation Safety Act of 2007]. It will require all new vehicles less than 10,000 lbs. in the United States to have a backup camera-based system by September 2014. There have been some delays in getting this Act passed; however, the final rule is currently expected by December 31, 2012. Investors wanting to profit from this need to start buying share soon.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Gentex may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Gentex. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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